26 January 2023 | Other

U.S. gas is getting cheaper on warmer weather outlook and Freeport downtime

U.S. natural gas futures fell 6%, hitting a 19-month low, according to data released Wednesday. This is due to the meteorological forecast of less cold weather in the region and, therefore, a drop in gas demand expected over the next week. Another reason for lower prices is the growing market belief that Freeport LNG's export plant won't resume operations in the next few weeks or even months. 

Earlier, EBW Analytics reported better weather conditions in Texas and the Midwest. So, freezing of oil and gas wells that could lead to lower mining output, is considered to be unlikely. This data mitigates the risk of more severe weather in February. 

Analysts estimated that Freeport LNG's plant may not resume operations until February or March 2023. Meanwhile, the market expects a rise in gas prices, along with higher demand for the natural resource after a restart of the plant. 

But experts at Tudor Pickering Holt & Co. believe that the gas market will show an oversupply. Prices are likely to fall in order to push companies into reducing natural gas production and relieving storage facilities of excess reserves.

Company MarketCheese
Period: 19.05.2025 Expectation: 1000 pips
AUDUSD bounces off 0.635 support level toward 5-month high
Today at 09:38 AM 4
Period: 22.05.2025 Expectation: 89500 pips
BTCUSD correction wave forms sell signal targeting 93,700
Today at 08:47 AM 9
Period: 20.05.2025 Expectation: 4065 pips
Optimism for Tesla is limited by weak sales and competition
Today at 05:07 AM 9
Period: 16.05.2025 Expectation: 700 pips
Silver prices started to rebound toward 33.6
Yesterday at 11:15 AM 39
Period: 13.05.2025 Expectation: 900 pips
USDJPY seen retreating to 145.00
Yesterday at 09:38 AM 20
Period: 18.05.2025 Expectation: 3085 pips
Trading optimism and technical signal reinforce S&P 500's upside outlook
Yesterday at 08:18 AM 39
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Go to forecasts